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Hindustan Times
2 days ago
- Business
- Hindustan Times
Parl panel approves I-T Bill report
A Select Committee of Parliament has unanimously approved the report on The Income Tax Bill, 2025—paving the way for it to be taken up in the upcoming monsoon session of Parliament. The panel has retained the entire structure and provisions of the bill but suggested 285 amendments for better clarity in the bill's text. ANI photo The new Income Tax Bill aims to replace the 1961 I-T laws in order to make the legal framework simpler. The bill retains most of the provisions of the current law while it allows the Central government to frame new schemes for greater efficiency, transparency, and accountability. One of the major features of the Bill, according to experts, is to widen the ambit of undisclosed income to include virtual digital assets such as cryptocurrency. According to PRS Legislative Research, 'The Act also empowers the authorities to inspect electronic documents. The Bill retains these provisions and also allows authorities to gain access to a virtual digital space during search and seizure proceedings. The authorities will have power to gain access by overriding any required access code.' The Select Committee produced a report that had seven volumes and ran into 3,790 pages—one of the most voluminous reports by a House panel in the recent past. Members of the panel have been given time till Thursday morning to submit further suggestions for the government. A senior MP told HT, 'In every meeting of the panel all MPs were on the same page and focused on benefits for taxpayers. It was a rare sight.' The government has listed the IT Bill 2025 for passage in the monsoon session that starts on July 21. The new IT Bill is in sync with the government's larger plan to replace archaic laws with new legislations. Earlier, the Colonial-era Indian Penal Code was replaced by a new Bharatiya Nyaya Sanhita (BNS) and old labour laws were changed into four labour codes (yet to be implemented). 'Chaired today's meeting of the Select Committee of Lok Sabha to examine the Income-Tax Bill 2025. The Committee met for consideration and adoption of the Draft Report on the Bill, along with the proposed amendments,' tweeted the select committee chairman Baijayant Panda. The Select Committee held 35 meetings to examine the proposed Bill. During the course of the discussions, two suggestions came from industry bodies and tax authorities: to reduce Tax Deducted at Source (TDS) provisions and in some cases, the faceless assessment process should not be implemented. The panel overlooked both provisions. 'Such policy decisions can come only during the Budgets or in the Finance Bill,' said a senior functionary. Chartered Accountant Sunil Bhansali, managing partner in Oswal Sunil & Co. told HT that the new bill is 'in favour of Assessee. Technical things have been changed and the bill brings clarity in the IT laws, making it more user-friendly.' Defending the faceless verification of ITR, Bhansali said, 'It is very important as it reduces possibilities of malpractices of IT officials. It is a brainchild of the NDA government. But it is true that assessment officers often grapple with the large amount of papers, especially when they assess large business Houses.' Bhansali also said that TDS rates vary from 1% to 10% and the government should maintain uniformity in TDS rules. The new bill, introduced in the Lok Sabha on February 13, is aligned with the digital governance policy, could repeal redundant provisions of existing act and introduce new features such as provisions for low tax rates for cooperatives, tax on crypto-assets, incentives for startups, clarity on non-resident taxation, definition of capital gains, and introducing 'tax year' to replace confusing terms like assessment year. Although the proposed bill does not make any new announcements in terms of tax exemptions or compliances, it has specific mentions of all major issues and the taxpayer's class. The proposed law also provides clarity on anti-tax avoidance measures, transfer pricing regulations. It aims to provide ease of living for citizens and ease of compliance for businesses with incentives for entrepreneurship, innovation and digital transactions, people aware of the development said.
The Hindu
2 days ago
- Business
- The Hindu
Parliamentary panel clears Income Tax Bill 2025 with 285 suggestions, to be tabled in Monsoon Session
The Select Committee of Parliament that examines the Income Tax Bill-2025 is learnt to have finalised its report on Wednesday (July 16, 2025) with about 285 suggestions to change the legislation. The committee, headed by senior BJP MP Baijayant Panda, is likely to submit the report in the upcoming Monsoon Session of Parliament. Introduced in Lok Sabha on February 13, 2025, the Bill was referred to a Select Committee on the same day with instructions to report by the first day of Monsoon Session. Finance Minister Nirmala Sitharaman had announced in the 2024 budget that the Centre will comprehensively review the Income-Tax Act, 1961 in a time-bound manner to make it concise and easily understandable. 'Accordingly, the Income-Tax Bill, 2025 has been prepared which proposes to repeal and replace the Income Tax Act, 1961,' the Minister said in the statement of objects and reasons of the Bill. She added that the Income Tax Act passed in 1961 has been subjected to numerous amendments since its passage. 'As a result of these changes, the basic structure of the Income Tax Act has been overburdened and the language has become complex, increasing cost of compliance for taxpayers and hampering efficiency of direct tax administration. Tax administrators, practitioners and taxpayers have also raised concerns about the complicated provisions and structure of the Act,' she said. The Opposition had raised apprehensions on certain provisions of the Act and had alleged that it provides for misuse of power by authorities.
